(Reuters) – Halliburton Co’s third-quarter profit edged past analysts’ estimates on Monday, as tight pipeline capacity in the top Permian basin led to fewer well completions.
FILE PHOTO: Oil production equipment is seen in a Halliburton yard in Williston, North Dakota, U.S., April 30, 2016. REUTERS/Andrew Cullen/File Photo
Oil services firms, which help operators drill and complete wells, are seeing demand for their services cool as producers cut down on spending and delay completions due to pipeline bottlenecks in the Permian basin of Texas and New Mexico.
Halliburton said revenue from North America, its biggest market, rose 18.2 percent to $3.74 billion from a year earlier. International revenue rose 5 percent from the second quarter to $2.4 billion.
“Our international business continues to show signs of a steady recovery,” Chief Executive Officer Jeff Miller said in a statement.
Rival Schlumberger NV also managed a slight profit beat on Friday and cautioned that North American growth would slow due to the bottlenecks and hurt results next quarter.
Net profit attributable to Halliburton rose to $435 million, or 50 cents per share, in the third quarter ended Sept. 30, from $365 million, or 42 cents per share, a year earlier.
Excluding items, the company earned 50 cents per share, beating average analysts’ estimate of 49 cents per share, according to Refinitiv estimates.
Total revenue rose to $6.17 billion from $5.44 billion.
Reporting by John Benny in Bengaluru; Editing by Shounak Dasgupta
Source : Denver Post